QUESTION
I am looking into an irrevocable trust as a way to protect my house from creditors. I run a not-for-profit from my home. Is this a good choice?
Asked on May 14th, 2019 on Trusts and Estates - New York
More details to this question:
I am not wealthy but I have a lot of activity in my home do to the not-for-profit. Perhaps, insurance is enough to protect the home from potential creditors, but I have been looking into an irrevocable trust. How much does this cost and is it a good idea for someone who has no other assets other than the home that would go into it? I would like the flexibility to move and to have access to the principal if need be as well.
1 ANSWER
1 Award
If your creditors are just potential suits for liability, then insurance is good enough. You can add coverage for very little. The trust would limit your flexibility, and have other tax consequences. If you had significant real creditors, like loans, etc., then a trust might be a good idea. There are special trust types for your home, like a QPRT.
Answered on May 20th, 2019 at 5:53 AM